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ArcelorMittal’s Revenue and Income Fell in 3Q15

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ArcelorMittal’s price movement

ArcelorMittal (MT) has a market cap of $9.1 billion. The company’s YTD (year-to-date) price movement has been falling quarter-over-quarter in 2015. After the 3Q15 earnings report, MT fell by 0.55% to close at $5.43 per share as of November 6, 2015. The price movement on a weekly, monthly, and YTD basis is -3.2%, -14.9%, and -49.8%, respectively.

The stock has broken all major supports and is trading below all moving day averages. Currently, it’s trading at 9.4% below its 20-day moving average, 14.5% below its 50-day moving average, and 40.0% below its 200-day moving average.

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The VanEck Vectors Steel ETF (SLX) invests 4.4% of its holdings in ArcelorMittal. The ETF tracks a market-cap-weighted index of global steel firms. The YTD price movement of SLX is -32.6% as of November 5, 2015. The iShares MSCI Global Select Metals & Mining Producers (PICK) invests 1.5% of its holdings in ArcelorMittal.

The market cap of ArcelorMittal’s competitors are as follows:

  • Vale (VALE) — $20.4 billion
  • POSCO (PKX) — $13.8 billion
  • Ternium (TX) — $3.2 billion
  • Gerdau (GGB) — $2.4 billion

Performance of ArcelorMittal in 3Q15

The company reported net revenues of $15,589 million in 3Q15, a fall of 7.7% when compared to the net revenue of $16,890 million in 2Q15. The operating income fell to $20.0 million in 3Q15 as compared to the operating income of $579.0 million in 2Q15. The net income and EPS (earnings per share) fell to -$711.0 million and -$0.40 per share in 3Q15 as compared to the net income and EPS of $179.0 million and $0.10 per share in 2Q15.

Meanwhile, cash and cash equivalents and inventories fell by 22.8% and 7.2%, respectively, in 3Q15. The current ratio fell to 1.34 and the debt-to-equity ratio rose to 1.37 in 3Q15 as compared to the current ratio and a debt-to-equity ratio of 1.37 and 1.30, respectively, in 2Q15.

About ArcelorMittal

ArcelorMittal is a steel and mining company. It supplies quality steel products in all major markets including automotive, construction, household appliances, and packaging.

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